The coronavirus is a very serious disease that can be spread through the air. It has been reported in multiple countries and it causes fever, respiratory problems, and in some cases death. There are some people that have taken drastic measures to protect themselves from contracting this virus. Some business owners have cut their salaries so they don’t get paid if they become infected with the virus.
These CEOs are trying to lead by example hoping that their employees will follow suit and do whatever it takes to stay healthy! In this blog, we will discuss the CEOs who have cut their salaries due to the coronavirus pandemic.
Let’s take a look at them.
1. Bob Chapek (Disney) -Cut by 50%
Bob Chapek, chairman, and chief executive of Disney announced that he will be cutting his salary by 50% in response to the SARS-like coronavirus’s impact on countries around the world. “Disney is committed to doing its part and taking responsibility for the environment in which it operates. That includes making sure we are a good steward of all resources, including our employees’ time and talents – as well as their health,” said Bob Chapek.
2. Tim Boyle (Columbia Sportswear)-Reduced Salary To $10,000 From $18,000
Tim Boyle, CEO of Columbia Sportswear Company (Columbia) announced a salary reduction from $18,000 to $10000. This decision was made due to the company’s plan in response to the coronavirus outbreak. He believes this is an integral step in ensuring long-term stability and profitability for shareholders as well as employees.
Columbia, based in Portland Oregon, is a leading designer and manufacturer of active outdoor sports apparel as well as footwear with over 30 locations around the world.
3. Geoff Ballotti (Wyndham Hotels & Resorts )-Cut By 100%
Geoff Ballotti (Wyndham Hotels & Resorts) cut his salary by 100% due to the HMC coronavirus. The virus is a type of business-borne illness that can spread because it’s contracted through contact with fluids from infected people, such as when they sneeze or cough. A total of 66 people in the United States have now contracted HMC, including 15 who died from it.
The virus affects those with weakened immune systems (such as infants and the elderly) but is otherwise treatable if caught early on – so Ballotti’s decision to cut his salary by 100% was a smart one.
4. Brian Roberts (Comcast)-Donating 100% Of salary
Brian Roberts of Comcast has made the decision to donate 100% of his salary in order to reduce company expenses. This is despite being one of the highest-paid CEOs. “The scale and scope of this virus remind us all how interconnected we are,” said Brian, “and that’s why I’ve decided to forego my annual bonus and salary while Comcast provides the support our team needs to keep us connected.”
5. Ed Bastian (Delta Airlines)-Cut By 100%
Ed Bastian, CEO of Delta Airlines announced that he would be cutting his salary in response to the virus. The company was known for having one of the highest-paid CEOs in America and felt it was important to share some of their success with employees who were only compensated by a fixed wage such as those working on an hourly basis or part-time. Delta is one of the few airlines that has not canceled flights; Bastian stated that he “felt we had a moral responsibility to provide our employees with support and show confidence in them”.
6. Gary Kelly (Southwest )-Cut by 10%
Kelly, CEO of Southwest Airlines, is cutting his salary to $900,000 per year. He said that he wanted to “lead by example” and be mindful of the effects a global pandemic could have on airlines. It’s hard to say how much of this is genuine altruism and how much is savvy public relations, but it doesn’t really matter.
Kelly gets a lot of credit for his decision, and the company also gains some points among its employees. If more CEOs follow suit, it could be seen as a positive impact that helps slow down the spread of the virus.
7. Arne Sorenson (Marriott)-Cut By 100%
Arne Sorenson, CEO of Marriott International, is reducing his salary by 100% to put it in line with the wages earned by company employees. This change will take effect starting this month and apply to Mr. Sorensen’s annual compensation from March 2019 onward.
“We need to recognize that our people are the ones who make this company work, and we’re going to show them how much they matter,” Sorensen said in a memo. “I want everyone at Marriott International to know I am fully committed.”
8. Lawrence Culp (GE)-Cut By 100% Because Of The Virus
GE’s Chief Executive Officer, Lawrence Culp has opted to cut his salary by 100 percent in order to send a strong message that leadership needs to take responsibility. Culp was quoted as saying “If this is something without any risk whatsoever and I didn’t want my employees running around worried sick about it all day long, I would cut my salary by 100%.”
Culp also said he has been in touch with staff and found that “most everyone is very mindful of the situation”.
9. John Zimmer and Logan Green (Lyft)-Pledged to Donate Their Salaries Through June 2020
John Zimmer and Logan Green (Lyft) are cutting their salaries in half for the next year, pledging to donate all of that money—a combined $100K total—to charities supporting those affected by the coronavirus. Lyft is also donating $250K to educate people about how they can avoid getting sick or spreading it.
The Bottom Line
It is important to take steps to protect yourself from this virus and it can be difficult. These CEOs have taken drastic measures by cutting their salaries which may seem extreme, but if they are leading by example, hopefully, employees will follow suit!